Investors of Cryptocurrency Ignored 3 Straight Attacks 51% on ETC 0 750

Investors of Cryptocurrency Ignored 3 Straight Attacks 51% on ETC

Despite three “51% attacks” in a month, Ethereum Classic’s price has demonstrated strong resilience. Though down a bit for the past month, its persistence may indicate that security is not a top priority for investors rushing to join a bull run in the crypto market.

However, some warn that unless it improves its blockchain and makes it safer, additional attacks on Ethereum Classic could trigger a market sell-off and lead to a collapse of its digital asset.

For a blockchain network’s security, a “51% attack” is pretty much as bad as it gets. That’s when a single entity gains control of a majority of the network’s computing power, allowing it to siphon off extra units of the currency in what’s known as a double-spend.

So it would stand to reason that three successful 51% attacks in a month against the Ethereum Classic blockchain might dent investors’ confidence. But prices for the project’s native ETC token haven’t really taken a hit – a sign traders could be less concerned about security vulnerabilities than a quick profit in fast-moving cryptocurrency markets.

At press time, ethereum classic is trading at $5.06, down about 27% in the past 30 days at the same time bitcoin is off by 15%.

Three 51% Attacks in a Month

For the Ethereum Classic blockchain, 51% attacks have been a threat for a long time. Unlike Ethereum, from which it was hard forked, the Ethereum Classic network is committed to the Proof-of-Work (PoW) consensus algorithm, which is also used by BItcoin. But for large networks like Bitcoin, a 51% attack is prohibitively expensive to do given the enormous amount of computational power required by PoW to successfully do it. Ethereum Classic’s hashrate is much smaller, making it far more vulnerable to 51% attacks.

By press time, the hashrate of Ethereum Classic stood at 1.668 terahash per second, while Bitcoin’s at 117.95 exashes per second, according to BitInfoCharts.

Ethereum Classic is the product of a hard fork after the Ethereum network split in different ways following an infamous hack in 2016. The PoW-based blockchain has been chasing after Ethereum, which now represents the No.2 cryptocurrency by market capitalization.

Ethereum is planning on changing its algorithm sometime next year. In a tweet thread Sept. 2, Ethereum founder Vitalik Buterin argued Ethereum’s planned Proof-of-Stake (PoS) algorithm gives it a “key fundamental” advantage over PoW.

“In PoW, on the other hand, a successful attacker can just attack over and over again, with no possible way to delete their hardware without deleting everyone else’s hardware.”

During the month of August, the Ethereum Classic network suffered not one but three 51% attacks: the first one took place on Aug. 1, the second on Aug. 6 and a third on Aug. 29.

NiceHash, a hashpower broker, acknowledged its platform may have facilitated the recent 51% attacks, in a blog post on Sept. 1, but it also concluded that such attacks cannot be prevented or mitigated in a “truly decentralized proof-of-work solution.”

“The only thing one can do is make the price of an attack higher than the attacker reward,” the post added.

The Ethereum Classic network also suffered a 51% attack in early 2019, which led crypto exchange Coinbase to halt all ETC transactions, withdrawals and deposits at the time.

James Wo, founder of ETC Labs, the leading organization supporting the Ethereum Classic network, told CoinDesk via a spokesperson that his team has been trying to enhance the network’s security in the past year, including expanding the network’s core development team, and partnering with companies such as Chainlink, Swarm and Bloq.

The company announced two new hires on Sept. 3 to ETC’s core development team.

“These developments and partnerships are working to quickly propel the advancement of ETC and ensure a bright future for the network,” Wo said, who added that ETC’s price has held “strong” even with the recent 51% attacks.

Indeed, the attacks have not had any significant impact on its prices, which prompted a question: why would anyone put money in a token when its security is not guaranteed?

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Performance of Bitcoin, Ethereum, Binance Coin, and more Major Cryptocurrencies in Past 7-Days 0 88

Among major cryptocurrencies, the cryptocurrency on top of the list is Bitcoin (BTC), demonstrating a 7.73% plunge in the past 7-days. In addition to the past 7-days, BTC has demonstrated a 0.88% plunge in the past 24-hours, bringing its price down to $54,367.96 per BTC. In the past 7-days, the trading volume presented by BTC is $301,590,859,341, and as for the past 24-hours, the trading volume has been $27,123,144,567. Bitcoin’s market capitalization is $1,025,528,906,349.

The next cryptocurrency after BTC is Ethereum (ETH) that has demonstrated a 6.72% plunge in the past 7-days. In addition to the past 7-days, ETH has demonstrated a 1.43% plunge in the past 24-hours, bringing its price down to $4,069.74 per ETH. In the past 7-days, the trading volume presented by ETH is $153,390,144,193, and for the past 24-hours, the trading volume has been $14,288,475,596. ETH’s market capitalization is $482,536,352,740.

The next cryptocurrency after ETH is Binance Coin (BNB) that has demonstrated a 1.25% surge in the past 7-days. In addition to the past 7-days, BNB has demonstrated a 0.36% plunge in the past 24-hours, bringing its price down to $594.64 per BNB. In the past 7-days, the trading volume presented by BNB is $11,052,991,055, and as for the past 24-hours, the trading volume has been $2,624,786,716. BNB’s market capitalization is $99,339,989,069.

The next cryptocurrency after BNB is Solana (SOL) that has demonstrated an 11.31% plunge in the past 7-days. In addition to the past 7-days, SOL has demonstrated a 4.70% plunge in the past 24-hours, bringing its price down to $188.92 per SOL. In the past 7-days, the trading volume presented by SOL is $17,623,413,018, and for past 24-hours, the trading volume has been $1,532,855,227. SOL’s market capitalization is $57,691,831,963.

The next cryptocurrency after SOL is Cardano (ADA) that has demonstrated a 19.82% plunge in the past 7-days. In addition to the past 7-days, ADA has demonstrated a 3.38% plunge in the past 24-hours, bringing its price down to $1.50 per ADA. In the past 7-days, the trading volume presented by ADA is $10,794,051,803, and as for the past 24-hours, the trading volume has been $1,576,176,273. ADA’s market capitalization is $50,142,620,175.

The next cryptocurrency after ADA is XRP (XRP) that has demonstrated a 13.32% plunge in the past 7-days. In addition to the past 7-days, XRP has demonstrated a 2.03% plunge in the past 24-hours, bringing its price down to $0.934 per XRP. In the past 7-days, the trading volume presented by XRP is $21,134,881,131, and for past 24-hours, the trading volume has been $2,324,678,870. XRP’s market capitalization is $44,036,264,454.

The next cryptocurrency after XRP is Polkadot (DOT) that has demonstrated an 18.52% plunge in the past 7-days. In addition to the past 7-days, DOT has demonstrated a 4.19% plunge in the past 24-hours, bringing its price down to $33.81 per DOT. In the past 7-days, the trading volume presented by DOT is $14,474,918,716, and for the past 24-hours, the trading volume has been $1,197,508,287. DOT’s market capitalization is $33,318,274,781.

Paytm Founder Believes Crypto is Here to Stay 0 84

One of the most prominent digital payment companies based in India is Paytm and its founder recently shared his views about the cryptocurrency space. He appears to be quite positive about crypto and notes that it is here to stay. As a matter of fact, he thinks that crypto will become a mainstream technology in a couple of years. The Indian Chamber of Commerce (ICC) organized a virtual conference on Thursday that provided Vijay Shekhar Sharma the opportunity to speak. Paytm’s founder said that cryptocurrency will stay and is the answer Silicon Valley has to Wall Street. 

A multinational technology company, Paytm is based in India and specializes in digital payments. Last week, the company completed its Initial Public Offering (IPO). Paytm disclosed in its IPO filing that its total number of registered users has reached an impressive 337 million and is dealing with 22 million merchants. Sharma opined that he was very positive about cryptocurrencies because they are based on cryptography and in a couple of years, they would also become a mainstream technology very much like the internet that has now become a part of our daily lives. The Paytm founder did admit that currently, people were only using crypto as a means of speculation.

He elaborated that right now, every government appears to be confused about cryptocurrency, but in a time span of five years, crypto would become mainstream technology. Sharma thinks that people will come to see what the world will be like without crypt. But, he was quick to add that this doesn’t imply that digital currency would actually replace sovereign currencies, such as the Indian rupee. The Paytm founder also added that once his company’s revenue goes past the $1 billion thresholds, he will launch the service in some developed countries as well. 

Currently, he said that Paytm was running the largest payments system in Japan in a JV, but they would go without a partner later on. The Chief Financial Officer (CFO) of Paytm, Madhur Deora had said early this month that his company was considering offering bitcoin services to people, if cryptocurrencies are to be legalized in India. However, this does not seem to be likely any time soon because the Indian government has certainly not taken a positive stance towards these crypto assets. As a matter of fact, the government recently made headlines as it is pushing for crypto legislation in the country and not the good kind.

It is expected that a crypto bill will be introduced and passed in the parliament’s winter session that will begin next week. The purpose of the bill is to impose a ban on private cryptocurrencies, but there are expected to be some exceptions. But, since the bill has not been published, it is not clear as to what kind of exceptions will be applicable. There have been conflicting reports and debates, as some people believe that it just might legalize a few cryptocurrencies, while others believe it will ban them completely in favor of the digital rupee to be introduced by the Reserve Bank of India (RBI). 

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